What are the GST changes affecting online marketplaces?
From 1st April online marketplaces or digital marketplaces such as Off The Beaten Track are required to show, collect and return GST on all listed services. This includes accommodation and all supplies or services associated with an accommodation or property listing.
If you have a listed service in Aotearoa New Zealand using an online marketplace, these new rules will apply to you whether you are GST registered or not.
For OTBT, GST will now captured on accommodation, cleaning (if charged separately), food & beverage, activities, and any other listed supply or service. All of our listed services by default include Goods & Services Tax (GST).
How will you as a landowner and accommodation host be affected by this change?
If you are GST-registered, from 1 April 2024 you will need to treat the supply of listed services sold through online marketplaces as a zero-rated supply on your GST return. You can continue to claim GST on the costs you incur in making these supplies.
If you are not GST-registered, from 1 April 2024 a new flat-rate credit scheme will apply. Under this scheme your online marketplace (OTBT) will collect GST at the standard 15% rate. They will return 6.5% to Inland Revenue and will pass the remaining 8.5% to you. This flat-rate credit is for you to keep and recognises costs you incur when supplying these services.
Do you need to register for GST? If you are not registered for GST, you will need to register if you have earned, or will earn more than $60,000 from all your taxable activities in any 12-month period. This includes sales provided directly to customers (for example through your own website) or made through an online marketplace.
What do you as a landowner and accommodation host have to do to prepare?
To prepare for the change, OTBT are required to confirm the GST information from each landowner. This will include the registered company name, GST registration status, and the GST number associated with the registered company. If you are a new or existing landowner, please ensure you have shared this information with us. To do this, you can complete our online Landowner GST Information or email us with your information
For further information, you can visit Inland Revenue's page on the upcoming change or check out their Goods & Services (GST) Guide on Listed Services
If you have any questions relating to the GST changes and how to implement, please contact Inland Revenue directly.
If you have any questions related about OTBT specifically, please do not hesitate to contact us to discuss further.